§ 10-2-704 — Fiduciary responsibilities

Colorado § 10-2-704

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Licenses

Text

(1) (a) All premiums belonging to
insurers and all unearned premiums belonging to insureds received by an insurance
producer licensee under this article shall be treated by such insurance producer in
a fiduciary capacity. The commissioner may promulgate such rules as are necessary
and proper relating to the treatment of such premiums.

(b) All premiums received, less commissions if authorized, shall be remitted
to the insurer or its agent entitled thereto on or before the contractual due date or,
if there is no contractual due date, within forty-five days after receipt.

(c) All returned premiums received from insurers or credited by insurers to
the account of the licensee shall be remitted to or credited to the account of the
person entitled thereto within thirty days after such receipt or credit.

(d) If any insurance producer has failed to account for any collected
premium to the insurer to whom it is owing or to its agent entitled thereto for more
than forty-five days after the contractual due date or, if there is no contractual due
date, more than ninety days after receipt, the insurer or its agent shall promptly
report such failure to the commissioner in writing.

(2) Every insurer shall remit unearned premiums to the insured or the proper
agent, or shall otherwise credit the account of the proper licensee, as soon as is
practicable after entitlement thereto has been established, but in no event more
than forty-five days after the effective date of any cancellation or termination
effected by the insurer or after the date of entitlement thereto as established by
notification of cancellation or of termination or as otherwise established. It shall be
the responsibility of any insurance producer having knowledge of a failure on the
part of any insurer to comply with this subsection (2) to promptly report such failure
to the commissioner in writing.

(3) No insurance producer under this article shall commingle premiums
belonging to insurers and returned premiums belonging to insureds with the
producer's personal funds or with any other funds except those directly connected
with the producer's insurance business.

(4) Any insurer that delivers, in this state, a policy of insurance to an
insurance producer representing the interest of the insured upon the application or
request of such producer shall be deemed to have authorized such producer to
receive on the insurer's behalf any premium due upon issuance or delivery of the
policy; and the insurer shall be deemed to have so authorized the producer.

Legislative History

Source: L. 93: Entire article R&RE, p. 1370, � 1, effective January 1, 1995. L. 2001: (4) amended, p. 1210, � 32, effective January 1, 2002.